The current context in the world of finance and business defines that every company must maintain a competitive advantage over others. And this is because competition grows, technology applied to commerce develops in rapid steps, the consumer public tends to be more enlightened and demanding, and economic crises are more frequent.
One of the best current features to maintain competitive advantage is integrated logistics. Then, understand this concept better, and see how to apply it in your company.
What is integrated logistics?
This feature consists in the integration of all the operations and processes carried out in the logistics, from the production of the merchandise to the final delivery, in the hands of the customer. In order for integrated logistics to be developed, an organizational system is needed to ensure efficient logistics flow management, controlling related activities.
To facilitate this control, one can divide the integrated logistics into three parts:
- administration of materials (input / output flow);
- movement of materials (transport of inputs / products);
- physical distribution (distribution of products).
In times of crisis, cutting spending is critical to ensuring competitive advantage, as continued and high costs will eventually drive the company to close or to live plunged into financial trouble. In this way, integrated management of material flow and information flow allows a more comprehensive view of the supply chain. This vision favors, in turn, the coordination of the processes, aligning them according to the goals and objectives of the company.
Smart, strategic planning based on a broader approach is critical to optimizing time and cost. In this case, the total gain is visualized and not only the gain relative to one step of the logistic process.
Evaluating only the gains related to a specific stage ends up generating financial lack of control, since other steps (with their costs and profits) are disregarded.
Another advantage of integrated logistics is minimization of common risks to the processes of control, handling, storage and distribution of products. Since integrated logistics corresponds to systemic planning – that is, to the formation of a control and management system – all operations and information will be properly interconnected.
The integration of the processes allows a more objective and secure coordination, in order to achieve the purpose it proposes. Fault tracing is much more accurate as well as predicting errors and risks – and, as you know, the adoption of preventive practices is much more effective than waiting for errors to occur in order to proceed with corrections.
The risk management provided by the application of integrated logistics is, in short, in three ways:
- Identification of existing flaws and application of immediate corrective measures;
- predicting the possibility of risks and adopting preventive strategies (reduction of risks as such);
- visualization of contingencies and development of effective procedures to solve them in case they happen.
Reducing risk is an important competitive advantage, considering that risks generate losses in all directions, including: financial, material, productivity, customer.
Stakeholder is a term that refers to suppliers, employees and customers. Considering that the logistics structure will be better organized, the satisfaction of all those involved with such processes is also certain.
Integrated logistics enables better prices and customer service to be provided, as company costs will be reduced – as productivity increases and process agility (and greater agility implies deadlines delivered scratch).
Do you already use integrated logistics as a competitive advantage? Tell us what you think about it and share this post on your social networks, helping to get more people access to the information and get your questions answered!
ORBIT Logistics is one of the world’s leading suppliers of inventory management solutions (VMI – Vendor Managed Inventory and SCM) and real-time data acquisition.
Our company, founded in 2003, provides a modular system for supply chain management and automation, serving global customers from offices in Leverkusen (Germany), Atlanta (USA), Sao Paulo (Brazil) and Shanghai (China). A highly qualified team of more than 40 engineers and technicians offers customized turnkey solutions for process management and monitoring.
For more information:
Phone: (55 11) 3796-1755 / 1756
Cellphone.: (55 11) 96420-1701